Police Shut Down Four Rings Using Stolen Credit Numbers

January 26, 1985|By Carl Hulse, Staff Writer

Broward sheriff`s deputies say they have grounded four rings that were costing Fort Lauderdale-based airlines at least $1 million a year by using stolen credit card numbers to buy tickets for resale at cut-rate prices.

Friday, investigators announced the arrest of seven people they claimed were involved in the scheme, bringing the total charged in the ongoing investigation to 21 One more was being sought.

Sgt. Jerry Korte, supervisor of strategic investigations, said sheriff`s officials believe they are on the verge of putting the suspects out of business in Broward.

``I may be wrong, but I believe we have the activity identified in Broward County,`` Korte said. ``Now hopefully we can put a stop to it.``

Arrested on warrants and held in the Broward County Jail were Julius Leventhal, 57, Fort Lauderdale; Robert Kiff, 39, Lauderhill; and Franklin Kulkens, 42, Fort Lauderdale. Arrested in Boca Raton and held in the Palm Beach County Jail was Patricia Alwais, 21.

According to police, they were arrested on a variety of charges, including dealing in stolen property, scheming to defraud and grand theft. Leventhal and Baggio were identified by police as leaders of different rings. Both Leventhal and Kiff were arrested on similar charges in October.

Police said they are still seeking Robert Berndtson of Fort Lauderdale.

Korte said the scheme involved ordering tickets by mail or for pickup at reservation counters by using legitimate credit card numbers that were in some cases stolen or resold by restaurant employees.

Those ordering the tickets would sell them for prices reduced from regular airfare. When the real credit card holder would contest the bill, the airlines would take the loss of the fare.

During the course of the investigation, Korte said, police also have arrested and charged ticket buyers as they boarded airplanes.

Korte said one of the operations had as many as 50 regular customers.

Police said tickets were bought on nine airlines, with were bought, but Delta Air Lines having the had the most reported instances. The investigators estimated the take loss to from the airlines at about $250,000 for each of the four rings. The airlines are reluctant to reveal the full extent of the loss, according to police.

U.S. postal authorities attending an afternoon news conference said the suspects in the scheme could eventually face federal charges as well for using the mails to defraud.